Vietnam: Conditions of strategic investors when buying convertible shares of public service units

Le Hai

14:09, 10/02/2021

Recently, the Government of Vietnam issued Decree 150/2020/ND-CP stipulating regulations on converting public non-business units into joint stock companies.

According to Vietnam's Decree 150/2020/ND-CP, The competent authority shall decide on the initial sale of shares to strategic investors for public service units on the list of which the State continues to hold more than 50% of the charter capital. Strategic investors are domestic and foreign investors who meet the following conditions:

Having full legal status as prescribed by the law in Vietnam;
Having production and business results for the last 2 years up to the time of registration to buy shares with profit, no accumulated loss;
Having a business line suitable to the public service service provision field of the transformed public service unit;
Having a written commitment to register to become a strategic investor in the transformed public service unit, including the contents specified in Vietnam's Decree 150/2020/ND-CP.

More details can be found in Vietnam's Decree 150/2020/ND-CP, effective from February 15, 2021.

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